All articles with 'pareto charts' Tag

Time for some statistics and charting fun. Let’s learn all about histograms and Pareto charts in Excel 2016. You will learn

• What, why and when?
• How to set up and customize histograms
• How to use Pareto charts?
• How to create dynamic histograms?
• Creating histograms in old Excel (2013 or prior versions)

Sounds interesting? Let’s get started then.

ABC analysis is a popular technique to understand and categorize inventories. Imagine you are handling inventory at a plant that manufactures high-end super expensive cars. Each car requires several parts (4,693 to be exact) to assemble. Some of these parts are very costly (say few thousand dollars per part), while others are cheap (50 cents per part). So how do you make sure that your inventory tracking efforts are optimized so that you waste less time on 50 cent parts & spend more time on costly ones?

This is where ABC analysis helps.

We group the parts in to 3 classes.

• Class A: High cost items. Very tight control & tracking.
• Class B: Medium cost items. Tight control & moderate tracking.
• Class C: Low cost items. No or little control & tracking.

Given a list of items (part numbers, unit costs & number of units needed for assembly), how do we automatically figure which class each item belongs to?

And how do we generate above ABC analysis chart from it?

How do you segment customers by revenue easily in Excel, so that you can see which customer groups to focus on. Find out, and download this handy template.

In this charting example, Jeff, our guest author, occasional charter and Excel wizard shows us how to segment customers based on revenue and depict the result using Excel charts.

A Pareto chart or pareto graph displays the importance of various factors in decreasing order in columns along with cumulative importance in a line. Pareto charts are often used in quality control to display most common reasons for failure, customer complaints or product defects. The pareto chart is a great way to do the pareto analysis. Today, we will learn how to use excel to make a pareto chart.